July August 2007Teas Tell Many Tales
By
Jeffrey Klineman
Walk into any Peet’s Coffee to pick up a pound or two and you’re
likely to encounter a neat two-disc paper dial resembling a
cocktail menu. As you spin the top circle, details about different coffee
types emerge, including flavor notes, environmental characteristics,
and the best time of day to drink each one.
Walk into any convenience or grocery store, head for the bottled
teas, and you’ll find something different – a ragtag assemblage of glass
and plastic bottles occupying inconsistent shelf space in the cooler or
along the aisle.
This is not a way to treat a hot-selling item. And iced teas are red hot,
up nearly 26 percent last year, according to Beverage Marketing Corp.
According to the Tea Association of the USA, tea sales have quadrupled
in the last 10 years, to $6.2 billion, and may reach $10 billion by 2010.
And the reason is clear. Maybe even better than sex, health sells.
Beverage Marketing Chairman Michael Bellas, for example, recently
suggested that the tea boom is similar to that of red wine, which has
experienced a massive surge of sales growth powered by reports suggesting
that it might help fight heart disease.
Similar research findings indicate that the teas flavonoids and catechins
may function as powerful antioxidants, perhaps reducing cancer
risk. Additionally, green tea is being marketed as a potential metabolic
fuel, one that can result in extra calorie burning and weight loss.
But while the potential for healthy results – especially long term ones
– has helped to energize the tea category, it hasn’t necessarily helped
retailers reap extra rewards. Consumers might be buying tea at the expense
of carbonated soft drinks (quick: name a drink category that isn’t
benefiting at the expense of CSD’s!), but they’re not necessarily buying
more liquid overall. And that means that, unless they’re able to take
advantage of up-sell opportunities, retailers are only breaking even.
But, being natural, traditional, and international, tea has specific advantages
over CSDs that other beverages don’t. Those advantages can
be leveraged to help improve the margins on the tea products retailers
sell, while also increasing their potential to sell even more products.
For inspiration, look to tea houses: a wide variety of blends combine
with an ever-growing menu of custom products to create a multitude
of angles for growth.
For a simple mixture of leaves and water, tea has a flexibility of
formulation and, yes, function to enable savvy retailers to approach
the category from a number of directions. It’s something that
marketers and manufacturers already realize, and are trying to fill
through horizontal expansion of their tea families to include products
like red and green teas, sweetened, unsweetened, herbals, decafs,
and energy varieties.
But the ever-broadening variety of products on the market also allows
retailers to pick and choose an assortment that can appeal to many
different kinds of consumers.
In other words, motivated retailers can use their tea sections as mininarrowcasting
experiments. With tea awareness at an all time high
(need number here) and the number of RTD varieties and preparations
increasing like so many rabbits, there’s no need to be wedded to a
simple brand lineup. Remember, as a retailer, you can tell a story with
a cooler door or with a product display, and by mixing and matching,
by blending your tea selections, you can tell your consumers that
there’s a lot more to the product than just the latest introductions from
Snapple, and that there’s a lot more to tea than just antioxidants.
And here’s the good thing: all teas have antioxidants, anyway. With
that compelling reason for consumers to buy teas already covered, there
are ways to keep them coming back. What’s nice is that you can extend
your reach into so many other sales strategies knowing that consumers
are turning to tea already.
To that end, what we’ve done is, with the help of some of our buddies
in the industry, put together some arrays of teas that indicate
five different sales approaches. The idea here? When it comes to
catching customers, antioxidants offer one of the widest nets you can
throw out there, but to keep bringing them back, a little narrowcasting
helps, as well.
TEA FOR TASTE
Here in the taste segment, variety
thrives. Your products might include
juice and tea blends, conventional
“sweet” teas, including mint and
lemon, as well as a wide variety of
Snapple and AriZona products and
clones. The idea is that there are as
many flavors and sweetener levels as
possible, from Arnold Palmer to Peach
Ginger, and room for Republic of Tea’s
Pomegranate Green as well.
When laying out a taste arrangement, pull in as many different flavors
as possible, and go up and down the pricing ladder. Think your
customers will sniff at Lipton with Lemon? What about an organic
Sweet Leaf with a grinning granny on the side? Too expensive? They
might go for a Snapple. The point here is to offer a shelf set that covers
a variety of tastes at a variety of price points.
Track your customers carefully. Cycle through different flavors if
your space is limited. Make sure you ask them about the ones they like
and don’t like. You might be going conventional here, but you can do
so at a premium – it doesn’t all have to be AriZona (although make sure
you stock plenty of that, too.) Magnolia Spice teas, for example, offer
a variety of sweetened options that will give you a range of flavors at a
better price point.
TEA FOR ENERGY
Tea was one of the most popular additives
to energy drink formulations last
year, and there’s no secret why – the
number of health studies associated
with tea extract and its natural caffeine
content make it a natural fit for this fastgrowing
beverage category. But because
of that native caffeine, tea is a fine energy
source itself. And by factoring in a number of
other brews made with Yerba Mate, a solid “natural”
energy shelf emerges in your store.
A sign helps guide customers to this setup: “Need a Lift? Turn to
Tea,” or some similar language will clue them in to the fact that the
shelf they’re looking at combines all of the health benefits of tea with
the energy they crave.
Start with conventional or organic green teas, and then go up to
black, which have about half the caffeine of a cup of coffee (Honest Tea
even has a handy graphic showing that very ratio). From there, move
on to products like Guayaki or Bombilla Gourd Yerba Mates, a pair of
upscale glass bottles that provide a strong boost. Next to those you can
add Kombucha, a fermented tea that packs an even stronger punch. Finally,
punctuate the energy category with an exclamation point – Inko’s,
Steaz, AriZona, and even conventional products have their own energy
drinks that use white, green or black teas for flavor and caffeine.
TEA FOR SNOBS
Welcome to the high end, the fine
wine-like world of delicacy and
“terroir.” No products in this
section need to be sweetened,
because your consumers like
their products straight, clean,
and with a point of origin.
Here, you run products with
the whiff of import, both regularly
and on a rotating basis. A spotlight on
India, China, Japan, or even Great Britain
gives you the opportunity to put a cold-brewed single-sourced product
on the shelf at a premium. With companies including Tazo, Honest,
Ito En, and products ranging from matcha to barley tea, a snobby shelf
with a steady turn can bring in plenty of high-margin sales.
Or go for color: Inko’s White; Kalahari Red; Tempsest Green; Honest
Tea’s Just Black; New Leaf Blue. They all offer you a chance to catch
the inquisitive consumer in a series of taste comparisons. And yes, you
can probably do it all with Snapple and AriZona, if you think your customers
might embrace different tea types that way, as well.
TEA FOR FUN
Aside from energy, there are a lot of tea products that are being marketed
with a sense of fun. Note TeaZazz’s and Steaz’ carbonated tea
products, as well as Jones Organics. They’ve all got the chance to go
under a “have you tried me?” label, along with Fuze’s odd tea, milk and juice blends and the intriguing
Thai iced tea blends from
Taste Nirvana. Blends work
well here, as well, be they the
coffee/tea mix from Cha Dao,
the same Arnold Palmer from
AriZona or, if you want to upscale it, Sweet Leaf ’s Half and Half.
Here’s where the Swiss Hemp Iced Tea might sell, as well as that great
tea mixer for booze, Delta Blues iced tea.
And, because we couldn’t leave it out, we’ve also included:
TEA FOR HEALTH
Here’s where you can roll out not just the
antioxidants, but specific salubrious
functions. Products like Anteadote
and Tonic Scene offer lines that are
geared toward relieving colds, upset
stomachs, providing extra vitamins
and relieving stress. Teany’s whimsical,
minimalist blends work here,
as does that ubiquitous, “calorie
burning” product, Coke and Nestea’s
Enviga. A shelf of herbal teas, a stand
with Ricola nearby, and some Sudafed behind
the counter; what more could one need?
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